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Walmart Ups Ante In Fight With Amazon By Abandoning ShippingPass

February 1, 2017: 12:00 AM EST
To stay competitive with Amazon, Walmart is ditching its $49-a-year two-day shipping subscription, dubbed ShippingPass, and replacing it with free shipping for purchases over $35. In doing so, the retailer is acknowledging that free two-day shipping is now the standard in online shopping. The new strategy takes aim at Amazon’s highly successful Prime offer, which offers free two-day shipping for an annual $99 subscription fee. Data from Cowen and Company show that by November 2016, almost half of U.S. Internet users were living in a household with a Prime subscription. Some observers speculate that Walmart’s battle with Amazon will lead to even more tactical moves, such as deep discounting. [ Image credit: © Walmart ]
Yory Wurmser, "Walmart Challenges Amazon with New Shipping Plan", eMarketer, February 01, 2017, © eMarketer Inc.
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